September 28, 2011

China New Borun Corporation, a producer and distributor of corn-based edible alcohol, announced the completion and operation of three projects for crude corn oil, liquid carbon dioxide and grade-A edible alcohol production.

The company's crude corn oil project is located in its Shandong facility and has a designed capacity of 13,000 tonnes per year. The project is currently producing approximately 1,000 tonnes per month.

Its liquid carbon dioxide project, also located in Shandong, has a designed capacity of 40,000 tonnes per year. The project is currently producing approximately 3,000 tonnes per month.

Meanwhile, the company's grade-A edible alcohol project is located at its Daqing facility. The project has a designed capacity of 50,000 tonnes per year and is currently producing approximately 4,000 tonnes per month.

Jinmiao Wang, chairman and CEO of Borun, commented, "With the on-schedule completion of our three new projects, we have improved our capability to increase the yield we get from processing corn and expanded our capacity for crude corn oil and liquid carbon dioxide.

Both crude corn oil and liquid carbon dioxide provide us with greater revenue diversification and a larger customer base, which coupled with our expanded capability to produce grade-A edible alcohol, give us confidence that our plans for strong growth in the fiscal 2011 are on track."

China New Borun's edible alcohol products are primarily sold as an ingredient to producers of baijiu, a popular grain-based alcoholic beverage that is sold throughout China in retail stores, restaurants and bars.

The company, based in Shouguang of Shandong province, also produces DDGS feed, corn germ, liquid carbon dioxide and crude corn oil as by-products of edible alcohol production.